Expert Calls for Overhaul of Local Content Strategy to Revitalize Thai Automotive Sector

According to a report by Prachachat Business published on September 17, 2026, Veerayooth Kanchoochat has argued that current tax-based incentives are inadequate for sustaining the Thai automotive industry. He has called for a major strategic overhaul of the nation's 'Local Content' requirements to better reflect modern industrial needs.

Kanchoochat suggests that the current framework should be tightened and modernized. His proposal includes shifting the focus toward counting investments in research and development (R&D), advanced technology integration, and workforce skill enhancement as part of the local content criteria. Furthermore, he advocates for increased support for small and medium-sized enterprises (SMEs) within the Tier 2 and Tier 3 supply chains to strengthen the domestic ecosystem.

For residents and those interested in the Thai economy, this proposal highlights a potential shift in how the government may approach industrial policy. If adopted, these changes could influence the competitiveness of automotive manufacturers operating in Thailand and impact the broader supply chain landscape. However, it remains to be confirmed whether the government will adopt these specific recommendations or how such a policy shift might be implemented in practice. As of now, these suggestions remain a strategic proposal from an expert rather than an enacted government policy.